This is the EW perfect model chart setup, there is a glitch , with wave 4 down its meant to state " 38.2%, 50%, 61.8% of wave 3 not 4 " for clarity.
Now to be clear, I am no expert on this, but i have studied it enuff in the past to get the general idea, mainly to get good entry points and exit points within reason, I used to use EW all the time exclusively but with modern trading today with algo trading systems predominantly used by instos, i found that the perfect EW model was greatly skewed, so I sought other methods of trading , moving average systems to counter balance EW, plus its much less time consuming.
Looking at this chart can be rather daunting with all the respective fib ratios and if you dont get the right wave count, the whole excercise is rather pointless, so I have simplified things with a set of rules of my own which is easier to understand based on the chart above
Basically everything with charting comes from a set of 5 waves plus an ABC correction post wave 5 up as illustrated, then reverts back to wave 1 ...........rinse , repeat, this is FACT.
Rules of EW that is not negotiable.
a) Wave 2 down must not exceed the base of wave 1 up............it can go much lower than 50 or 61 fib ratio !!
b) Wave 3 up is the longest and most explosive of the motive waves 1, 3 , 5 up
c) wave 4 down should not normally exceed the height of wave 1 up to the downside ......within reason.
d) ABC post wave 5 up, tends to finish up close to the height of wave 1 up ..........within reason
If you were to deaw some horizontal lines thru that chart you would get what I mean.
Bottom line is, EW is not an exact science, its just a guide and very time consuming, but very helpful if you can grasp the basics.
So lets have a look at the set up of GXY.........EW style.
Weekly chart displays the motive wave set up ( main waves ) and within the motive waves, you have your sub waves and within your sub waves, you have another set of sub waves ( illustrated on the LHS under SW1 ), as i said, everything moves in a 5 wave series.
So on the weekly chart, GXY is currently motive wave 3 up, the longest and strongest and could exceed the height of motive wave 1 up by 161 or 2.61 % based on the model chart.
Now lets look at the daily chart
This chart shows the wave 5 series within the current motive wave 3 up setup, you can see, we have gone thru 2 wave 5 series and onto the 3rd, .........
So the wave count that I have for GXY over the weekly and daily chart is.....Motive wave 3 up, sub wave 3 up with sub wave 4 down imminent, there is no point me going any further with predicting price movements into the future until this sub wave 3 up is complete and we see where sub wave 4 down finishes, then we could speculate then.
This current sub wave 3 up is one crazy ride , everything on my daily chart suggests its shot to bits, with very little movement left on the weekly, but what do i know, i am just a small boat riding big waves with an insto, i think we know who wins.
I hope this makes sense.
IMO
Not financial advice
DYOR